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Friday, August 29, 2014

Orange and Los Angeles County Market Changes



There are many great Orange & LA County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (714) 335-0844 for a FREE home buying or selling consultation to answer any of your real estate questions.
 
Since January, we have been helping people buy, list, and sell every single week, so we have an exact pulse of what's going on in our Orange County market. We are going to be sending you videos every few weeks, so you can be aware of current trends and anticipate future changes in real estate.

Like most agents, we can get you a simple CMA or free market evaluation if you're interested. Unlike most agents, however, we are always available to talk to you about market conditions in our area. If you are interested in what's going on in real estate, contact us immediately - changes are coming that are going to have a huge impact on home values. We'll keep you updated as much as we can here on this video blog, but being proactive is the best way to successfully navigate the market.

If you have any questions about buying or selling, you can reach us in whatever way is most convenient for you. Call us at (714) 335-0844, email us at FDelRio@live.com, or text us at (626) 780-2705. Thanks, and have a great week!

Tuesday, July 29, 2014

Things to keep in mind before you decide to sell


There are many great Orange & LA County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (714) 335-0844 for a FREE home buying or selling consultation to answer any of your real estate questions.


Welcome back to our video blog, your place for online real estate information, ideas, and how to get the most out of the market. Right now, the Orange County market is still a great market for home sellers, which is good news if you have been on the fence about selling. Limited inventory continues to drive home prices up. During the summer, the days are longer, giving more hours for buyers to look at your property.

Of course, the decision to sell your home isn't solely based on market conditions. You have to look at your personal situation to know when the right time to sell is. To help you do that, we have come up with a list of 4 things to keep in mind before planting that "For Sale" sign in your yard.

1. Be debt-free
  If you didn't have all of your financial ducks in a row the first time around the home buying block, you've probably learned a lot of good lessons the hard way. Put those lessons to good use and be a money-smart home buyer this time around. Check out your finances to make sure you have your savings in order before you purchase

2. Equity is on your side

 Just a few years ago, home values plummeted. A lot of us remember those times. It sent many mortgages underwater, but thankfully, the tide has turned. If you aren't sure what your home's equity is right now, we can get you a free Competitive Market Analysis to determine the approximate value of your home. If your home has recovered enough value to provide you with 20% or more equity on your next purchase, putting that amount down on a new home will keep private mortgage insurance companies at bay.

3. Does your home fit your lifestyle?

 Is your home currently meeting your everyday needs? Perhaps you could really use an extra room or two for your growing family. On the other hand, empty-nesters can really benefit from selling right now while rates are low in Orange County. You can sell your large home, move into a smaller one, then put the rest towards your retirement.

4. Can you afford the move?
 Don't get so excited about your next home that you forget the costs of leaving your current one. Hiring professional movers and being prepared for costs to improve your home for prime time showing should all play a factor. Painting your home is one of the best and cheapest improvements you can make to increase your home's worth.

Ultimately, there is no single formula for determining when to sell your home. Partner with a real estate professional you can trust to provide you with honest advice for you, your family, and your budget. If you have any questions at all, please feel free to give us a call. We would love to help you out with whatever you need!
 

Tuesday, July 8, 2014

Orange & LA County Real Estate Market Update for June 2014


There are many great Orange & LA County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (714) 335-0844 for a FREE home buying or selling consultation to answer any of your real estate questions.

 It's been a little while since we last spoke with you, and some key things have shifted in the Orange & LA County real estate market. Hopefully you find this information useful if you're buying or selling.

  • Normal / Stable Market: We are entering a stable market due to an increasing inventory of homes. We currently have a 3-month supply of homes, compared to last June when we had a 30 day supply. 
    • This is an improvement over last year when people were fighting each other over available homes. This year, if you have an attractively priced home in a good location, you'll be able to sell it for a good price and possibly receive multiple offers. I would also expect a slight amount of appreciation stemming from these changes.
  • Less Demand: Another thing to note is that we do not have the backlog of buyers that we once had, and so even if your home is well-priced, in good condition and in a good location, you may sit on the market for a few weeks. This has nothing to do with your property being sub-par, we simply don't have the number of buyers we used to. 
  • Low Interest Rates: Mortgage interest rates continue to stay very low. Rates are currently sitting around 4.25%, but they are expected to rise by a whole percentage point by the first quarter of 2015. If you're thinking of buying, now would be a good time to do so because homes are very affordable right now. If you wait, you will only be paying more and more in your monthly mortgage payments, and that could cost you thousands of dollars over the course of a loan.  
  • Listing Price or Higher: Unfortunately for buyers, you will likely have to pay the listing price for a home, or maybe even a little extra. You may be able to negotiate, but for the most part my clients in Los Angeles and Orange County are paying the full listing price.  
  • Don't Mind the Media: There have been various reports that have been hounding the real estate industry, and you should disregard them. They are using old, dated information from almost 6 months ago. The same is true for real estate websites - you should be wary to trust their information including home listings and home pricing. You should always consult your local real estate agent if you want the most updated information about real estate in your area.

At the end of the day we have a very stable market with slight appreciation (depending on where you are). Below this text I have also included two figures that illustrate precise differences between the market of June 2013 vs. June 2014 (just click on them to enlarge).

If you have any questions about this information or about Orange & LA County real estate in general, please do not hesitate to contact me. I am always willing to sit down with you to discuss all of your individual needs.












Tuesday, June 17, 2014

The Benefits of Trading Up



There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (714) 335-0844 for a FREE home buying or selling consultation to answer any of your real estate questions.

The Benefits of Trading Up
I want to talk to you about a subject that  I am very passionate about. I want to discuss trade up purchases. We specialize in these types of property sales at Frank Del Rio and Associates, and there are many benefits of trading up that you need to know about.

"Trading Up" refers to selling your existing property in order to purchase a more expensive property. This has become a common trend with our clients for a couple of different reasons:

  • Our clients want to lock in the mortgage rates on a more expensive home. Mortgage rates are at an all-time low and locking in these rates now is a wise investment. 
  • Trading up also locks in any future appreciation that a home may have. The more expensive a home is, the more it will appreciate in value over time.
 There are a couple different ways that you can trade up: 
  •  You could sell your existing home first and then purchase a new one.
  •  You could purchase the new home first and sell your old home at a later date
Whichever method you prefer, I am more than willing to aid you with expert guidance and advice throughout the entire process, ensuring that you make a sound decision with the best results possible.

If you have any questions about how to price your property, then please don't hesitate to contact me. You can reach me via phone or email and I would be more than happy to share some advice with you.

Tuesday, May 20, 2014

Price Reductions Trending? You Need to be Prepared



There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (714) 335-0844 for a FREE home buying or selling consultation to answer any of your real estate questions.

Selling your home without reducing the price?
Today I would like to speak with you about a pricing trend that I am seeing right now. This trend is price reductions. We have not experienced price reductions in almost a year and a half in our local real estate market. The market has been so hot that sellers believe that buyers will purchase for any price, but that is not the case anymore.

What we know is that inventory is up in Orange County, Eastern San Gabriel Valley, and the West Inland Empire. Inventory is actually up by 25% from January and sales have slowed down tremendously. If a Realtor or anyone else tells you that prices are still rising and the market is booming, well, nothing could be further from the truth.

Sellers are making price reductions for three different reasons:
  1. The seller isn't listening to the agent's advice about competitively pricing the property.
  2. The seller chose the price based on inaccurate information, or they just got a little greedy. 
  3. The seller hired an inexperienced agent to sell the home, and they overpriced it. This is happening more and more often, so it is important to hire an experienced agent. 

If you price your home too high the market will immediately shun you. Buyers will not think twice about your home and you will spend weeks on the market until you are forced to sell your home at a highly reduced price. You definitely don't want to put yourself in a situation like this.

To stay competitive and get the most money while pricing your property, follow these guidelines:
  • Listen to a great Realtor who has a proven track record of selling homes. Look at their individual record, not their company's record.
  • Ask the agent what their list-to-sale price ratio is. A true professional will know these numbers and can provide you with proof of these numbers. 
    • I'm currently getting my clients 99.8% of the asking price, and the average Realtor will only get you 92.2% of the asking price.

Make sure to do your research when pricing your home. You should know the home prices in your local area and how they compare to your own property. If you price your property just a hair below the real value, you will be creating momentum in the market and buyers will see a great value in your property. This will subsequently rise the price of your home through multiple offers and a bidding war may eventually ensue, causing you to get more money than you ever could have hoped for.

I also want you to know that the market will never let your home sell for too little. The market will naturally raise the price and buyers will offer more and more for your home. However, the market will allow an overpriced home to sit for months. This is why it is so crucial to price your home properly.

With this being said, if you have any questions about how to price your property, then please don't hesitate to contact me. You can reach me via phone or email and I would be more than happy to share some advice with you.

Wednesday, April 23, 2014

Another Housing Bubble?



There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 780-2705 for a FREE home buying or selling consultation to answer any of your real estate questions.
 
Are We Facing Another Housing Bubble?
Today we're going to be talking about housing bubbles. In a real estate bubble, home prices inflate because of overly-optimistic expectations that prices will keep rising. When people can't afford to keep up with the prices, the bubble bursts and demand for houses decreases. While supply goes up, the prices will then drastically drop. 

Today there are some markets around the nation that are seeing prices go up so quickly that consumers are worried that we are facing another housing bubble. My clients in Orange County are always asking me about where we stand in the market, and I have some data to shed some light on this.

From 2000-2006 home prices were skyrocketing because of over-optimism on real estate, careless lending standards, and really low mortgage rates. At the time that the bubble occurred, we over-valued our real estate by 39%. Built on this shaky foundation, when prices cooled and millions of people defaulted on their home mortgages, the bubble didn't just burst - it exploded. This caused the biggest real estate and credit crisis in modern history. 

Fast forward to today, and we're still in recovery mode. With tighter lending standards it is harder to buy a home now than it was back then. But in certain markets we've seen prices rise rapidly again, leading some to wonder if history will be repeating itself again. In our own Orange County market, prices have risen by 17%. 

The increase in California is generally due to the investors taking up all of the tight supply and some of the tech millionaires willing to pay exorbitant prices for property. The other over-valued cities in the nation are Honolulu, Austin, and Miami. These areas are all dealing with high demand and tight supply. 

Should this be a cause for concern about a possible bubble? Not yet. On a national level, our home prices are still 5% under their true value. Of the 100 or so markets that are monitored by real estate websites, only 19 are overvalued right now. In 2006 when the bubble burst, all 100 of them we overvalued. So if prices continue to increase at this rate, then we might be concerned about a bubble, but it's just not happening.

Price gains are starting to slow down, and consumer protection is stronger than it has ever been. We also have strict lending standards that have been put into place to ensure people will not be over-borrowing like they were last time. 

So, we're nowhere near the bubble levels that we saw a few years ago, but it's a good idea to keep a pulse on what your local market is doing and where prices are going. Bubbles do pop up from time to time, so pay attention to what your real estate market is doing.

If you have not been keeping an eye on the market here in LA County or Orange County, then please give me a call and I would be glad to discuss these things with you. I want to put you in the best possible position for you to succeed.

Friday, April 4, 2014

How to Avoid these 6 Common Home Selling Mistakes


 
There are many great Orange County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (626) 780-2705 for a FREE home buying or selling consultation to answer any of your real estate questions.

How to Avoid these 6 Common Home Selling Mistakes
In accordance with our commitment to educate you about real estate, we are here to talk about 6 common mistakes people make when selling their property. Keep in mind that all of these are totally avoidable - you just need to know about them beforehand.
6 Common Home Selling Mistakes
1.     Overpricing Property: This initial mistake can ruin a perfectly sell-able property. Luckily, Frank has a good handle on Southern California homes and can effectively price yours for a fast sale at a premium price. Always consult a professional like Frank, who has over 14 years of experience.
2.     Inability to show a home: You must make your home available to as many consumers as possible. If you can't show your home to a large audience, then your chances of selling it have already significantly decreased.
3.     You Must Declutter & Depersonalize Your Home: In relation to showing your home, you cannot have clutter or personal items like artwork or posters showing when you are trying to sell it. Neutralize your home so that buyers can imagine themselves inhabiting it. Plus, if you're going to be moving out, it's good to get all the clutter cleared out anyway.
4.     Unpleasant Odors: Once again, aim to have your property as neutral as possible, including the way it smells. Don't smoke inside your home, and avoid cooking fragrant foods like cabbage or curry. Even pleasant smells should be avoided in a home because those carry personality, and you want to aim for neutrality. If you have pet stains or odors, consult a professional service to remove them.
5.     Unwillingness to Negotiate with Buyers: Real estate agents are professional negotiators and they have your best interests in mind with everything they do. No real estate deal goes without a hitch, so expect negotiations, and expect your agent to work in your favor each and every time. Concessions are sometimes necessary for the sale to occur.
6.     Unwillingness to make repairs: If a buyer is making an investment on your property, it is certainly within reason for them to have concerns about repairs. The thing is, you have to choose your battles wisely. Some repairs can be more important than others, and your agent should negotiate and inform you as to which ones are most crucial to sell your property.
Hopefully this information has been helpful for you. If you know anyone that is interested in buying or selling property in the Orange County area, then please contact us and we would be glad to help them out. Give us a call at (626) 780-2705 or email us at FDelRio@live.com